Kyrgyzstan identifies two key barriers to PPP development

Kyrgyzstan faces two major obstacles to the development of public-private partnerships (PPP), Nurbek Anarbekin, Director of the PPP Center under the National Investment Agency under the President of Kyrgyzstan, said during the session "Public-Private Partnerships: Unlocking Eurasia's Future Investment Potential" at the Annual Meeting and Business Forum of the Eurasian Development Bank (EDB).

Report's correspondent in Almaty quotes Anarbekin as saying the first and most pressing challenge is access to financing. Commercial banks are unwilling to provide large loans on terms suitable for private partners, as interest rates remain too high while loan maturities are too short.

"PPP projects are inherently long-term, with implementation periods ranging from 15 to 40 years, whereas commercial banks seek a much faster return on their investments. We have been working to establish cooperation with state-owned banks so they can provide dedicated long-term financing for PPP projects under government guarantees and at affordable, including subsidized, interest rates," Anarbekin said.

He identified the second systemic challenge as the lack of effective monitoring mechanisms during the implementation stage of PPP projects.

"The PPP Center's portfolio already includes around 100 projects. However, the center has no authority to oversee the implementation of agreements between government agencies and private partners. As a result, a number of projects that successfully completed all preparatory stages-including contract signing and feasibility studies-gradually lose momentum due to the lack of proper oversight. We are therefore seeking expanded powers that would enable the PPP Center, together with supervisory authorities, to monitor project implementation in accordance with the terms of signed agreements," the head of the center added.